Here at The Motley Fool, our favourite holding period is 'forever'. While we accept that there may come a time where the only logical thing to do is to let go and move onto more promising prospects, we strive to find companies that will be much bigger in the future – perhaps even 50 years from now.
I like to look for stocks that are trading at reasonable prices that boast strong competitive advantages and fantastic leaders, and then let time do the rest of the work.
That's why there are still so many attractive opportunities to take advantage of right now – even with the Australian stock market hovering near multi-year highs.
Carsales.Com Ltd (ASX: CRZ) is one such opportunity. Although the shares are trading on a rather lofty P/E ratio of 25.4x, their $10.17 price tag seems more than justifiable considering the company's dominant position within the online automotive classifieds space. One of the most appealing things about this business is that its costs are primarily fixed, meaning that its margins will continue to improve so long as its customer base continues expanding. In addition, as more vehicles are purchased and sold via Carsales.com, it will become increasingly difficult for competitors to steal market share. Given that it is still in its early days, Carsales.com is presenting as an attractive business right now.
As one of the world's most dominant players in the beverage industry, Coca-Cola Amatil Ltd (ASX: CCL) hardly needs an introduction. The shares have not been as popular as the drinks themselves recently – investors have sold the stock off en masse in light of falling profits and aggressive competition from primary rival Schweppes. However, I strongly believe these issues will be limited to the short-term, meaning that now is the perfect time for long-term investors to be making their move. Shares are trading hands at just $9.05, which is a massive 41% below their 2013 peak.
Data analytics business Veda Group Ltd (ASX: VED) is another stock worthy of a position in your portfolio, or at the very least on your watchlist. Although the shares have recovered considerably over the last month or so, I still believe they are presenting as good value for (capital 'F') Foolish investors. The GFC highlighted the importance of only lending to those who can repay their debts, so I believe demand for Veda Group's services will strengthen over time. With a strong track record for growing revenues and earnings, investors can be confident of solid returns in the foreseeable future.
